As neighbours and trading partners, Canada and the United States have deeply intertwined economies. When the U.S. government imposes new tariffs (essentially taxes on imported goods), it doesn't just affect American consumers; Canadians are likely to feel the effects too. Global headlines can feel far removed from your day-to-day life. However, these policy changes can trickle down to your wallet in very real ways.
Let’s take a moment to understand what’s happening and how you can prepare your finances to weather the oncoming tariff storm.
Tariffs are taxes placed on goods imported from other countries. Governments typically use tariffs to protect domestic industries or respond to trade disputes. For example, if the U.S. places tariffs on Canadian steel or technology components, the cost of those products increases for American buyers. The intention on the part of the U.S. Government is to encourage Americans to purchase American-made goods instead. That can affect cross-border trade flows, employment, and pricing on both sides of the border.
If the U.S. introduces or increases tariffs, especially on key Canadian exports like lumber, metals, or agricultural products, it can lead to reduced demand for Canadian goods. That, in turn, may affect our economy, affecting jobs, consumer prices, and even the value of the Canadian dollar.
Of course, with the U.S. tariffs comes potential counter-tariffs – Canada imposing our own tariffs on U.S. imports. Here are a few key areas where you might notice a change:
While these impacts may feel unsettling, the good news is there are proactive steps you can take to weather this economic moment.
Here are some practical strategies to help you and your family prepare and respond wisely.
Start by reviewing your monthly budget. Look for areas where you can reduce discretionary spending or build a cushion for potential cost increases in goods or services. Small shifts now can make a big difference in the months ahead.
A strong emergency fund is a cornerstone of financial resilience. If you’re able, aim for 3–6 months’ worth of essential expenses saved in a high-interest savings account. It’s a practical way to cushion yourself against market volatility and maintain peace of mind.
Market ups and downs are normal, and diversification can help smooth the ride. It’s also important not to panic. We’ve already seen a few dramatic ups and downs in this current trade dispute and will likely see more. If you’re unsure how tariffs might affect your investment portfolio, consider meeting with a financial advisor. At Kindred, our Wealth and Investment team can offer you sound advice with your particular needs in mind.
When possible, buying Canadian-made goods can help sustain local businesses and reduce reliance on imported goods subject to tariffs. It's also a meaningful way to align your spending with your values—fostering economic resilience in your own community.
Although knowledge is empowering, constant headlines can create anxiety. Choose reliable, balanced news sources and set healthy boundaries around your media consumption. Focus on what you can control.
At Kindred, we walk alongside our members through every season of life including those shaped by economic or political upheaval. If you have questions about your financial plan or would simply appreciate a listening ear, we invite you to connect with a member of our team. Whether in branch or online, we’re here to help you Make Peace with Your Money®.